It all boils down to determining what expenses or
extravagances are important to you, he says. Go after
the income required to spend without guilt on whatever those
extravagances may be, and then live frugally in respect to all
other aspects of life.

"I am a big believer in finding something that you really like
that's expensive," he explains to Torabi. "You can put your money
on that, and then be frugal besides that."

As for Cramer's big expense, it comes around every Sunday
afternoon during football season: "I am a Stanley Frugal except
for my box at the Philadelphia Eagles games," he says.

Besides his box seats — and one nice vacation a year, he tells
Torabi — he hunkers down when it comes to other expenses and
still challenges himself to spend less every month, despite his
financial success.

"How much you need is totally dependent upon the extravagance,"
Cramer says. "My wife and I are of the same ilk: We're not crazy
about spending, but when we do it, we do it big."